HTC One could be company's last big shot at relevance as profits near zero

Taiwanese smartphone maker HTC Corp. (TPE:2498) confirmed on Thursday that it had badly missed Q1 earnings targets, posting the worst ever quarter in its young history. The phonemaker pulled in NT$42.8B ($1.42B USD), but made very little profit, earning only NT$85M ($2.83M USD) after taxes. Both revenue and profits missed expectations.

Looking ahead to Q2, HTC hopes revenue will rise to NT$70B ($2.37B USD) and to boost it's operating margin to between 1 and 3 percent, up from 0.1 percent in Q1.

HTC is looking forwards to the release of its 1080p flagship Android smartphone, the HTC One, (and possibly the not-yet-announced HTC One Mini) to nearly double revenues on a QoQ basis. Embattled HTC CEO Peter Chou comments, "This was a pivotal quarter for HTC. In February our teams set a new standard for smartphones, launching the new HTC One. The reviews of fans and critics alike have been overwhelmingly positive and we look forward to delivering on the promise of this device."

HTC is counting on the One to bring its revenue back to life. [Image Source: HTC]

If the HTC One succeeds HTC may return to growth. But if it flops HTC Peter Chou is expected to resign, having told executives as much in a meeting (reportedly) last fall. HTC is undergoing a major shift in its marketing, ditching its "Quietly Brilliant" motto, and adopting a more loudly belligerent marketing stance, similar to rivals Samsung and Apple, Inc.'s (AAPL) snarky marketing departments.

Although it doesn't matter to many, the chance of a removable battery and microSD would have sent many more sales to the One than the GS4...

.. The next problem? It ships with 4.1.2. People who've had HTC devices before have no doubt been burned by the total lack of updates. Shipping your flagship with an out of date OS sends a warning signal that people don't like.

Considering not many batteries can make it through a day of heavy usage, I'd say yes. Especially since I think heavy users and buyers of flagship models are one and the same group.Plus, should my battery die, how do I wipe the phone before sending it in for a replacement? Because we all know what happens to your data if you don't wipe it clean.

quote: But a removable battery? Do people really care about that anymore?

I guess it depends on preference. Me personally, I favor modularity for my laptop and phone battery because I'm that kind of person who likes the option to be able to take it apart and swap parts out, etc. Case in point, my HTC Thunderbolt is on its third battery (warranty replacement battery finally died so I picked up an aftermarket flavor) and the phone is still going strong which has saved me $$$ from having to get a new phone.

I generally agree, and with Apple products it's no problem. My ancient iPod shuffle and 1st-gen nano batteries are still going strong after all these years. All the iPhones and iPod touches we've had in the family have had no noticeable battery degradation over time. However I'm not sure I trust HTC quite yet, as I've already had to replace batteries in my wife's HTC EVO, and her LG Optimus also needed a new battery in less than 2 years.

quote: .. The next problem? It ships with 4.1.2. People who've had HTC devices before have no doubt been burned by the total lack of updates. Shipping your flagship with an out of date OS sends a warning signal that people don't like.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates